‘If we shake hands, we’ve got a deal’
April 6, 2015 – 12:01 am ET
NEW YORK — With a deeper pockets of Berkshire Hathaway Inc. now subsidy it, a former Van Tuyl Group intends to supplement dealerships going forward.
“In a subsequent integrate of years, we’re expected to make a series of acquisitions,” Berkshire Hathaway Chairman Warren Buffett told a NADA/J.D. Power Automotive Forum here final week.
Buffett afterwards done a representation of sorts to a room full of dealers and other automobile attention representatives: “We always do what we say. If we shake hands, we’ve got a deal. We’ve always got a money. We don’t renegotiate ever in a final notation like some people do. Manufacturers are expected to approve us. So we will make some-more deals.“
Larry Van Tuyl, authority of a 81-store dealership organisation now famous as Berkshire Hathaway Automotive, pronounced he’ll continue to follow that handshake policy. He also remarkable that Van Tuyl Group had never been incited down for manufacturer capitulation of a deal.
Berkshire Hathaway Automotive intends to stay in a U.S., during slightest “for now,” Van Tuyl said. He progressing had pronounced on CNBC that a group’s merger activities were focused “in a U.S., primarily.” But he wants to enhance over a 10 states in that a organisation now has stores.
Buffett deflected a doubt about either he worries that he overpaid for Van Tuyl Group by shopping in an sourroundings in that experts contend dealership prices are during all-time highs. “We’re shopping forever. we don’t buy formed on this year’s gain or this month’s gain or this day’s earnings,” he said. “We’ll possess it 50 years from now.”
The cost tab on a Van Tuyl understanding hasn’t been disclosed, though some experts have estimated it during some-more than $4 billion. Before a squeeze by Berkshire Hathaway, Van Tuyl ranked No. 4 on a Automotive News list of a largest U.S. dealership groups, with sell sales of 139,538 new vehicles in 2014.
Buffett pronounced he’s perceived a “good Detroit welcome” from such automaker leaders as General Motors CEO Mary Barra and Ford Motor Co. CEO Mark Fields. He remarkable Barra sole him a new Cadillac on a six-minute expostulate to lunch scarcely a year ago. “She’s copiousness good,” Buffett said.
Buffett, who pronounced he subscribed to Automotive News in his teens, also remarkable that he sole his aged 2006 Cadillac for gift for $122,000, adding “if any of we guys need a good used-car salesman.”
Van Tuyl pronounced Buffett has told him to continue what he’s been doing. “And he means it,” Van Tuyl said. “Really, zero has changed, and we don’t anticipate any change.”
But that doesn’t meant Berkshire Hathaway Automotive won’t try out new ideas, Van Tuyl said.
Upon announcing a Berkshire Hathaway understanding final October, Van Tuyl mentioned that a dealership organisation was study a arrangement of a serf financial arm that would work online. He also remarkable during that time that he could try opportunities to combine with other companies in a Berkshire Hathaway stable.
“We’ve got adequate distance and scale now,” Van Tuyl pronounced today. “And we’ll have a lot some-more to go and try opposite things and see what is successful.”
Jamie LaReau contributed to this report.
You can strech Amy Wilson during [email protected].